The road to self-sufficiency

While reiterating Pakistan’s renewed commitment to implementing the agreed programme with the International Monetary Fund (IMF), Finance Minister Muhammad Aurangzeb made a significant observation at the Atlanta Council think tank: “We know what to do to rebuild the economy.” Realising that the IMF stability programme is squeezing, though not closing, the space for inclusive and sustainable economic growth, policymakers are trying to direct development loans and foreign investment into growth-enabling priority sectors. The underlying issue is how to boost productivity to meet the needs of frustrated people, which are currently met via debt-financed imports. When asked how Pakistan would successfully rebuild its economy, Mr Aurangzeb said, “We do not need too many policy prescriptions. We know what to do. It is time for us to move on.”